Rooms per person, part 2.

Use the OECD data on number of rooms per person and personals earnings to create a linear model for the relationship between Rooms per person and Personal earnings.

a) Find the equation of the regression line.

b) Explain the meaning of the slope of the line.

c) Explain the meaning of the intercept of the line.

d) Among all OECD countries, what living conditions may a household expect with personal earnings equal to $45,000?

e) Would you prefer to live in a country having a positive residual in this regression equation, or a one with a negative residual, if other circumstances are comparable?